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☆ The State of Payment Methods: More Choice and Economic Changes Are Affecting How Consumers Spend
▼ + stars: | 2023-03-16 | by ( Insider Intelligence | ) www.businessinsider.com time to read: +3 min

Although debit still reigns supreme, with consumer preferences moving toward digital, cash and checks will continue to be displaced in the US. But even though cash usage is dwindling, the Federal Reserve reports that 79% of US adults still hold cash daily. Cash and check usage may be dwindling, but debit and credit cards are seeing upticks among economic uncertainty. As consumers become more concerned about the economy and job security while also steadily adopting new digital solutions, we are seeing shifts away from traditional payment methods. Curious to learn more about the state of payment methods?

The report, however, paints a not-so-rosy picture of BNPL users' financial and credit health. BNPL users have access to credit — and they use itThe BNPL users surveyed may have had lower average credit scores than non-users, but they used plenty of credit products in addition to BNPL. Further, 69% of BNPL borrowers said they carried a balance on at least one credit card. On top of that, about half of BNPL borrowers had less cash and savings than what they paid for the purchases they made using BNPL. For example, 9% of BNPL borrowers with a credit card had missed payments of 30 days or more, compared to just 3% of non-users.

☆ Fintech firms may struggle to find investor love in rebounding U.S. IPO market
▼ + stars: | 2023-03-08 | by ( Manya Saini | ) www.reuters.com time to read: +4 min

REUTERS/Dado Ruvic/IllustrationMarch 8 (Reuters) - The once high-flying fintech startups looking to go public will have a hard time attracting investor attention, even though a freeze that has gripped the market for new listings is starting to thaw. "I don't think it would surprise anyone if they all sat out the 2023 IPO market," Kennedy added. In the IPO boom of 2021, 20 fintech companies raised a combined $10.93 billion, vastly overshadowing the $144 million that was raised by a lone offering in the following year, according to data from Dealogic. "The IPO market is not closed, but it's certainly more valuation and profitability focused," said David Ethridge, U.S. co-IPO leader at global consulting giant PwC. Reuters GraphicsLACKLUSTRE LISTINGSListed fintech companies have failed to largely live up to their shareholders' expectations as they have steadily booked losses, leading to a string of routs in their shares.

☆ More pain for the crypto industry means a chance for startups to pivot
▼ + stars: | 2023-03-07 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

After an awful 2022 that saw one of the industry's high-profile figures implode, the crypto market is looking for a bounceback. McDermott laid out to Insider's Bianca Chan and Dakin Campbell how tough times for crypto startups mean more realistic valuations and, in some cases, a reevaluation of the business model. Once of the most common critiques I hear about crypto is "It's a solution looking for a problem." The most recent crypto winter could force startups to be a bit more pragmatic about the specific problem they are looking to address. "If you can solve fraud in crypto, you can solve fraud in basically any part of finance," Meier told Insider.

☆ BNPL Sezzle had a brutal 2022. The fintech's CEO lays out its comeback plan amid a competitive field in payments.
▼ + stars: | 2023-03-06 | by ( Paige Hagy | Bianca Chan | ) www.businessinsider.com time to read: +6 min

Fintech Sezzle is betting on a comeback after a miserable year for not only itself but the wider buy now, pay later market. Murphy's LawTrue to Murphy's Law, anything that could go wrong did go for Sezzle, Charlie Youakim, Sezzle's CEO, told Insider. In February of 2022, Sezzle announced it would be bought by Zip, another Australian-traded BNPL. The shift leaves room for a "proliferation" of BNPL and other payment options, Savage said. That way, Sezzle can still extend credit to the customer, who can theoretically build on their credit score with short-term payments.

☆ 3 big questions about the state of Goldman Sachs heading into its second-ever investor day
▼ + stars: | 2023-02-28 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

All eyes are on 200 West Street in lower Manhattan today, the global headquarters of Goldman Sachs and site of the bank's second-ever investor day. Goldman's first investor day, in 2020, included plenty of discussion about the importance of building out its consumer bank. Will new details emerge regarding the asset and wealth management division that show the business is heading in the right direction? Goldman's asset and wealth management division will likely get plenty of attention today. Speaking of David Solomon... Goldman's CEO appeared on a recent episode of the bank's podcast, "Exchanges at Goldman Sachs."

☆ 6 ways shopping sites trick you into buying more
▼ + stars: | 2023-02-19 | by ( Avery Hartmans | Danni Santana | ) www.businessinsider.com time to read: +10 min

Online retailers use psychological tricks and tools to get consumers to make purchases. But we're shopping online now more than ever before, and these subtle nudges are starting to feel more widespread. Buy online, pick up in storeBuy online, pick up instore was all the rage during the pandemic. So much of how we shop and make purchase decisions is subconscious, he said, and while you may rationally know that scarcity is a marketing tactic, your subconscious doesn't. Tips for avoiding retailers' marketing tricksJust being aware of these marketing tactics isn't enough to protect you from them, Goldberg said.

☆ PayPal tells Australia it supports buy-now-pay-later regulation
▼ + stars: | 2023-02-16 | by ( Byron Kaye | ) www.reuters.com time to read: +3 min

SYDNEY, Feb 16 (Reuters) - Payments giant PayPal Holdings Inc (PYPL.O) wants buy-now-pay-later (BNPL) loans subjected to consumer protection law, it said in a submission to the Australian government, adding a powerful voice from inside the sector calling for regulation. Many other companies which sell BNPL loans said in submissions that they supported minimal or self-regulation. BNPL companies attract shoppers by charging no interest and make money from retailer fees. The company saw "merit in further consideration of the development of a bespoke BNPL credit reporting framework" without the full "costs typically associated with engaging in the credit reporting regime". The government has said it wants BNPL regulation in place in 2023.

☆ Britain sets out legislation to regulate buy-now-pay-later credit
▼ + stars: | 2023-02-13 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Feb 13 (Reuters) - Britain on Tuesday will set out draft legislation to regulate "buy now pay later" credit, saying the sector posed potential harm to consumers without thorough affordability checks. BNPL companies are largely unregulated and typically offer on-the-spot interest-free short-term loans that spread payments for retail goods like clothing. The finance ministry said it will launch a public consultation on Tuesday on legislation to regulate BNPL, giving the Financial Conduct Authority (FCA) powers to authorise operators and their activities. Last February, the FCA told BNPL operators Clearpay, Klarna, Laybuy and Openpay to change their contracts after identifying potential harm to customers. It had to use consumer rights law pending the new legislation the ministry was announcing on Monday.

☆ Does anyone want to stay in investment banking these days?
▼ + stars: | 2023-02-10 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

Banker salaries will get you in first class, but the potential total comp at PE firms and hedge funds will get you flying private. PE firms have been known to grind through people, but nothing quite compares to life at an investment bank. An investment bank's analyst program remains the go-to route to get your foot in the door on the Street. Click here to read more about salaries being offered by top PE firms to 2024 associates. All kidding aside, this deep dive by ProPublica is a fascinating look into how investment firms are helping the ultrarich save on taxes.

☆ Morgan Stanley downgrades Affirm, says the payment firm's offerings are too narrow for its ambitions
▼ + stars: | 2023-02-10 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

It's time to step to the sidelines on Affirm following its disappointing earnings results this week, according to Morgan Stanley. Analyst James Faucette downgraded the online payments stock to equal weight from overweight, saying the scope of Affirm's offerings are too narrow. Affirm shares fell more than 3% in the premarket Friday. What's more, Affirm missed analyst expectations on both the top and bottom lines in its second-quarter earnings report. Affirm shares have increasingly come under pressure since the company's initial public offering in January 2021.

☆ RBC Capital Markets downgrades Affirm as macro headwinds, higher interest rates persist
▼ + stars: | 2023-02-09 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

RBC Capital Markets is moving to the sidelines on shares of Affirm — at least in the near-term. Analyst Daniel Perlin downgraded the buy-now-pay-later company to sector perform from outperform, citing a difficult macro environment. The downgrade from RBC comes after Affirm posted a larger-than-expected loss for the fiscal second quarter and light guidance for the current period and full year. Along with the downgrade, Perlin adjusted his price target to $17 from $23 a share. So far this year, Affirm shares have surged nearly 66% after a tough 2022 that saw the stock crater 90%.

☆ Here's the 12-page pitch deck a fintech aiming to be an alternative to BNPL used to raise money from Fanatics CEO Michael Rubin and rapper Lil Baby, among others
▼ + stars: | 2023-02-09 | by ( Paige Hagy | ) www.businessinsider.com time to read: +4 min

Kasheesh is a fintech that allows consumers to split online payments across multiple cards. Kasheesh allows users to split online payments across several debit and credit cards. Fanatics CEO Michael Rubin, rapper Lil Baby, actor Damson Idris, and entrepreneur John Terzian most recently joined the cap table in this round. On Kasheesh's web-based browser plug in, users can split any online payment across up to five debit and credit cards. Read the 12-page pitch deck Kasheesh used to raise a $3 million seed extension round.

☆ How shopping sites are using psychology to trick you into spending more — and 3 ways to avoid them
▼ + stars: | 2023-01-31 | by ( Avery Hartmans | Danni Santana | ) www.businessinsider.com time to read: +10 min

Online retailers use psychological tricks and tools to get consumers to make purchases. Offering incentives for adding more items to online carts like free shipping is another example of the psychological tricks a retailer can play. Buy online, pick up in storeBuy online, pick up instore was all the rage during the pandemic. So much of how we shop and make purchase decisions is subconscious, he said, and while you may rationally know that scarcity is a marketing tactic, your subconscious doesn't. Tips for avoiding retailers' marketing tricksJust being aware of these marketing tactics isn't enough to protect you from them, Goldberg said.

☆ Bank of America reveals its top stocks ahead of earnings, including a favorite solar name
▼ + stars: | 2023-01-28 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

There still are plenty of stock-buying opportunities as earnings reports continue to roll out, according to Bank of America analysts. CNBC Pro combed through Bank of America's recent research to find the most attractive stocks that are well-positoned ahead of their reports. Fox Buy shares of the "best positioned" company in media, analyst Jessica Reif Ehrlich said recently about Fox . "We find Grab well positioned to balance revenue growth with profitability in both its core businesses— delivery & mobility," Salgaonkar said. Thesis: 1) We find Grab well positioned to balance revenue growth with profitability in both its core businesses - delivery & mobility.

☆ Fund manager names two U.S. stocks he thinks might not survive 2023
▼ + stars: | 2023-01-16 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Businesses that relied on "free and infinite capital" are now facing a harsh reality, according to fund manager Trent Masters, and could even go bankrupt. Carvana One company that falls into this category is online car dealer Carvana , Masters told CNBC Pro Talks . Affirm Masters also said that some buy now pay later (BNPL) companies, like consumer credit lender Affirm, were coming under strain in the current market conditions. Shares of Affirm Holdings have fallen by more than 80% over the past year to $12 a share. AFRM 1Y line Shares of credit lender Affirm have fallen by more than 80% in the past 12 month

☆ Consumers kept the economy hot in 2022. Now they’re losing steam
▼ + stars: | 2022-12-28 | by ( Alicia Wallace | ) edition.cnn.com time to read: +8 min

Consumers armed with plenty of pandemic-induced pent-up demand and bountiful financial buffers kept the economy churning throughout much of 2022. “But I think there are reasonable worries that may not last.”Consumer spending remained resilient throughout much of 2022. But the household savings rate now sits at 2.4%, the lowest level since 2005 and the second-lowest rate going back more than 60 years. As of September 30, credit card delinquencies remained near historic lows with a 2.07% rate, according to Federal Reserve data. Persistently high inflation has consumers leaning more on credit cards and other forms of financing.

☆ Citi/AAdvantage cardholders can now book American Airlines flights with Citi Flex Pay, but it may cost you more then it's worth
▼ + stars: | 2022-12-13 | by ( Tessa Campbell | Personal Finance Reviews Fellow | Read More | ) www.businessinsider.com time to read: +27 min

Book your American Airlines flight with your Citi/AAdvantage credit card and select Citi Flex Pay to spread payments over time. Hinterhaus Productions/Getty ImagesCiti/AAdvantage cardholders can now use Flex Pay for large American Airlines purchases. Now, with your eligible Citi/AAdvantage credit card you can book any American Airlines flight (must be worth $75 or more), and pay down the large purchase in smaller, equal monthly payments. Earn American Airlines AAdvantage miles with no annual fee Check mark icon A check mark. How to pay for your flight with Citi Flex PayCiti/AAdvantage cardholders can choose the Flex Pay option at checkout either on aa.com or through the American Airlines app.

☆ US lawmakers want answers on FTX's collapse. Sam Bankman-Fried may not have them.
▼ + stars: | 2022-12-12 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +4 min

But first, we are going to hear more from Sam Bankman-Fried this week, even if you think we've already heard quite enough from him. Sam Bankman-Fried testifies during a hearing before the House Financial Services Committee on December 8, 2021 in Washington, DC. Disgraced FTX founder Sam Bankman-Fried, who said he once considered himself a "model CEO," tweeted last week that he would testify before tomorrow's House Financial Services committee hearing focused on his firm's blowup. FTX's new CEO, John J. Ray III, who oversaw the bankruptcy of Enron, will testify in the first part of the hearing. A private lunch with the billionaire is on the table if you're willing to pony up the cash.

☆ Walmart is pursuing its own buy now, pay later loans, report says – one year after shoppers accused the retailer of 'killing Christmas' by canceling layaway
▼ + stars: | 2022-12-09 | by ( Ben Tobin | ) www.businessinsider.com time to read: +3 min

Fintech-backed venture One is going to offer buy now, pay later loans to Walmart customers as soon as next year, according to The InformationThe move comes as buy now, pay later loans have become increasingly popular with younger crowds. It will offer its own buy now, pay later loans to Walmart customers as soon as next year, according to The Information, which spoke with three people familiar with the matter. The latest development comes as other major retailers, like Apple, are planning to roll out their own buy now, pay later services. Walmart may soon reap the benefits of rolling out this new service through its fintech-backed venture. Retailers are already seeing an increase in shoppers turning to buy now, pay later: BNPL orders jumped 85% during Cyber Week, or the period between Thanksgiving and Cyber Monday, compared with the week prior, according to data from Adobe.

☆ Walmart plans to offer BNPL loans through its fintech venture - report
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: 1 min

Dec 8 (Reuters) - The fintech venture backed by Walmart Inc (WMT.N) is planning to launch buy now, pay later loans as soon as next year, the Information reported on Thursday, citing three people familiar with the matter. Walmart did not immediately respond to a Reuters request for comment. The retail giant last year entered a strategic partnership with investment firm Ribbit Capital to create the fintech startup, known as "One". Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Gen Zers are spending big this holiday season — and it could come back to bite them
▼ + stars: | 2022-12-06 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +4 min

Gen Z shoppers came out in full force during Black Friday and Cyber Monday this year. BNPL seems like an easy way to pay for purchases, but it's causing some young consumers to rack up debt. Despite predictions of a lackluster holiday shopping season this year, shoppers came out in full force during Black Friday and Cyber Monday. "One standout this Black Friday was the high turnout of Gen Z in stores," Kristen Classi-Zummo, apparel industry analyst with market research firm NPD, told CNN. Frequent BNPL use has led some young shoppers to rack up thousands of dollars in debt and tank their credit scores.

☆ More holiday shoppers are using 'buy now, pay later' services like Affirm & Afterpay. Financial advisors warn that it's a useful tool that can quickly pile on debt.
▼ + stars: | 2022-12-06 | by ( Samantha Delouya | ) www.businessinsider.com time to read: +4 min

Buy now, pay later usage surged 85% during Cyber Week, according to data from Adobe Analytics. According to recent data from Adobe analytics, "buy now, pay later" usage surged 85%, and revenue increased 88% during Cyber Week compared to the week before. Unlike credit cards, most BNPL services don't require a credit check and don't charge interest. Rules of the roadMany experts agree that using a buy now, pay later service can be helpful when shoppers exercise caution. Dickens said he advises his clients to "Make sure you don't have more than two buy now, pay later installment loans.

☆ More Americans tapping buy now, pay later for holiday gifts shows 'how stressed the economy is,' Harvard researcher says
▼ + stars: | 2022-11-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Americans are increasingly finding alternative ways to satisfy their holiday wish lists as they continue to grapple with high prices and inflation. On Black Friday through Cyber Monday, buy now, pay later payments through companies such as Klarna, Zip, Zilch, Affirm and Afterpay jumped 85% compared with the week before, according to the most recent data from Adobe. Buy now, pay later revenue rose 88% for the same period. Lux called this year's spike in installment buying "horrible, and a real statement on how stressed the economy is, especially for the average American." Heading into November, 60% of Americans reported living paycheck to paycheck.

☆ Ex-employees from Europe’s 60 biggest fintech unicorns like Revolut and Klarna spawned 310 new startups, new data shows
▼ + stars: | 2022-11-29 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +3 min

The biggest fintech startups in Europe are producing a large chunk of new founders in the industry. It's a sign that Europe's tech ecosystem is maturing, according to VC firm Accel. Europe's fintech boom is solving one of the biggest problems in the region's tech ecosystem, according to a new analysis: experienced founders. "Fintech has played a core role in the growth of the European tech ecosystem," Accel partner Luca Bocchio told Insider. The biggest producer of new startups, according to Accel, is N26.

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